Scotts Miracle-Gro Company (SMG)
Operating profit margin
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -174,400 | -434,000 | 723,000 | 585,200 | 409,600 |
| Revenue | US$ in thousands | 3,371,900 | 3,804,700 | 4,835,700 | 4,051,100 | 3,315,200 |
| Operating profit margin | -5.17% | -11.41% | 14.95% | 14.45% | 12.36% |
September 30, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $-174,400K ÷ $3,371,900K
= -5.17%
The operating profit margin of Scotts Miracle-Gro Company has shown a decreasing trend over the past five years. In 2019, the operating profit margin was 13.44%, which increased to 14.65% in 2020. However, in the subsequent years, there was a notable decline, with the margin reaching 15.23% in 2021, 10.70% in 2022, and further dropping to 8.21% in 2023. This decline indicates that the company's operating expenses have been increasing at a faster pace than its operating income, impacting the overall profitability of its operations. It is essential for the company to closely manage its operating expenses and seek opportunities to enhance operating efficiency in order to improve its operating profit margin in the future.
Peer comparison
Sep 30, 2023